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Quick Answer

PPMT Function

Finds the principal portion of a loan payment in a given period.

✓ Excel✓ Google SheetsExcel All versions

Syntax

PPMT
(rate, per, nper, pv, [fv], [type])

Parameters

ParameterDescriptionRequired
rateInterest rate per period.Required
perThe period for which to calculate principal (1 to nper).Required
nperTotal number of payment periods.Required
pvPresent value or loan principal.Required
fvFuture value or desired cash balance after the last payment (default 0).Optional
type0 = end of period (default), 1 = beginning of period.Optional

Basic Example

Principal portion of the first payment on a loan

=PPMT(0.05/12, 1, 360, 300000)
Result-$348.55

For a $300,000 loan at 5% annual interest over 30 years, the first month's principal payment is about $348.55.

Advanced Examples

Example 1: Principal in a later period

Amortization schedule

Principal portion of the 60th payment

=PPMT(0.05/12, 60, 360, 300000)
Result: Principal portion
The principal portion increases as the loan balance decreases.

How PPMT Works

PPMT calculates the principal portion of a specific payment. The total payment (PMT) equals the interest portion (IPMT) plus the principal portion (PPMT) for that period.

1
Enter rate
Use the periodic interest rate.
2
Enter period
Choose the period number.
3
Enter total periods
Type the total number of payments.
4
Enter present value
Input the loan amount.

Important Notes & Limitations

  • Returns negative values by default.

  • Requires consistent period units.

  • Does not include fees or taxes.

Common Errors & Fixes

#NUM! errorper is outside the range 1 to nper.

Fix: Ensure per is valid.

Wrong signPrincipal is negative when expecting positive.

Fix: Use -PPMT or ABS.

Download Practice File

Practice PPMT with Real Data

Download a sample CSV file with pre-populated data and practice exercises for the PPMT function. Works in both Excel and Google Sheets.

Works in Google SheetsCompatible with ExcelIncludes exercises

File format: CSV (comma-separated values) - opens in Excel, Google Sheets, and all spreadsheet apps

Related Tutorials

Calculate Loan Interest

Calculate loan interest in Excel using IPMT, PPMT, and PMT. Learn how to split every payment into interest and principal, and find the true total cost of a loan.

Mortgage Calculator

Build a working mortgage calculator in Excel or Google Sheets using PMT, IPMT, and PPMT. Estimate monthly payments, interest, and principal for any fixed-rate loan.

PMT Function Loan Payment

Master the PMT function loan payment formula in Excel and Google Sheets: calculate monthly mortgage or car payments and split interest from principal.

Frequently Asked Questions

What is the difference between PPMT and IPMT?
PPMT returns the principal portion; IPMT returns the interest portion.
Does PPMT + IPMT equal PMT?
Yes, for a fixed-rate loan, PPMT + IPMT = PMT for the same period.
Can PPMT calculate cumulative principal?
Sum PPMT over multiple periods or use CUMPRINC.